USD 3.8 billion
Report ID: SQMIG15F2085 | Region: Global | Published Date: April, 2023 | Pages: 157 | Tables: 90 | Figures: 77
Asphalt Market size was valued at USD 3.8 billion in 2021 and is poised to grow from USD 4 billion in 2022 to USD 5.67 billion by 2030, growing at a CAGR of 5.1% in the forecast period (2023-2030).
A combination of aggregates, binder, and filler called asphalt is used to build and maintain sidewalks, bicycle lanes, parking lots, railroad lines, ports, airport runways, and play and sports areas. Sand, gravel, crushed rock, or slags may all be used as aggregates in asphalt mixes. Asphalt is now more sustainable since some waste and byproducts, such as building and demolition debris, are utilized as aggregates. The road structure above the formation level, which comprises unbound and bituminous-bound elements, makes up an average asphalt pavement. In order to spread the weight of the traffic before it reaches the formation level, this allows the pavement.
One of the main reasons fueling the market expansion is the rapid urbanization of the world. Asphalt shingles, which are used to weatherproof roofs, are in high demand due to the growing population. In addition, asphalt offers a more practical and long-lasting substitute for concrete, which is typically employed in the building sector. Additionally, the market is expanding because of the rising use of recycled asphalt pavements (RAP) in driveways, parking lots, schools, and playground blacktops. In order to rebuild aged pavements and roadway surfaces, it is also utilized as an emulsion. For example, India has a huge network of roads. According to the Ministry of Transport's 2020 statistics, India has 1,32,500 km of national highways, 1,81,531 km of state highways, 6,14,028 km of district roads, and 44,04,404 km of rural roads, 5,31,608 km of urban roads, and 3,46,505 km of project roads. In addition, there are 79 main NHS, each of which has 500 branches and accommodates more than 48 different methods of transit. The number of expressways has also significantly increased, with Uttar Pradesh, a state in northern India, ranking first with a length of 687 km. Highway planning, design, and execution are also provided through a number of institutions and bodies at different levels. They are the Central Road Fund (CRF), the Indian Road Congress, and the Jayakar Committee (IRC). The Indian government's 20-year road plan has been effective in enhancing the country's road system. According to a survey, the planned NH road developed from the years 2014 to 2020 saw an improvement in the rate of road building, going from 55% to 70% in the previous five years.
Worldwide supply chain disruption and building project delays were caused by the COVID-19 pandemic. To stop the spread of the coronavirus, strict lockdowns and curfews were implemented in the majority of the countries. Construction was one of the most negatively hit industries as a result of the economic downturn because of a lack of manpower, raw supplies, and government regulations that forced the suspension of current projects. Although many local governments started steps to restart the development of roads, highways, and buildings in the third quarter of 2020. For example, in April 2020, with the government approving a partial lifting of the lockdown for some sectors in the effort to limit the Covid-19 epidemic, work on around 70% of the ongoing roadway projects has resumed. For the Delhi-National Capital Region (NCR), which continues to rank among the cities with the greatest number of positive cases, permissions to resume building have not yet been received. Construction work is still stuttering, despite having started in some regions, as the ministry of home affairs (MHA) cleared the way for the relaxation of restrictions on specific industries to get economic activity back on track.
US Asphalt Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 3.8 billion
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The global asphalt market is segmented based on the product type, application, end-use, and region. Based on the product type, the global asphalt market is segmented as hot asphalt, medium curing (MC) cold mix asphalt, and unique paving materials (UPM) asphalt. Based on application, the global asphalt market is segmented into asphalt cement, emulsion, paving, roofing, and others. Based on end-use, the global asphalt market is segmented into residential and non-residential. Based on the region, it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.
Asphalt Market Analysis by Product Type
In 2021, unique paving materials held the largest share in the global asphalt market. Due to its rapid expansion in the construction sector, driven by the increasing need for safer roads to reduce accident rates, paving is the industry's largest segment. Roadway development from growing nations like China, India, and others is expected to increase, which would boost this sector's growth. Bitumen performs well and offers durability under traffic and climate situations. Base courses for airports, bridges, tunnels, railroad lines, and other structures are paved with it. For example, in India, through numerous national initiatives like the Bharat Mala Project, the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Mukhaya Mantri Gram Sadak Yojana (MMGSY), and the Special Accelerated Road Development Program in the North East, the connectivity and improvement of the road sector have received a lot of attention. In order to cut carbon emissions, the PMGSY project used green technology, cold mix technology, and recycled materials to build a total of 47,447 km of roads in 2017–18. Since 2000, the length of roads has increased, and the Indian government has set a lofty goal of building 10,000 km of NH by the end of the current fiscal year. As a result, significant investment has been made in this industry. A total of 200,000 km of NH are anticipated to be finished by 2022, according to IBEF 2021.
Asphalt Market Analysis by Application
Following this, the roofing segment is also expected to observe a significant rise during the forecast period. The product is frequently used as a type of roofing shingle that may be purchased in a variety of ways depending on its functionality, look, texture, and other factors. These roofing shingles have a unique look and offer the best possible defense against severe weather. The need for waterproofing and recreation products is growing due to expanding applications in various locations, which is, in turn, propelling the global asphalt market expansion.
Due to the expansion of the construction business, the section of the highways is the biggest. The global asphalt market expansion for highway applications is being supported by rapid urbanization and a rising population. For roads and highways, the chemical is utilized as a binding agent to bond the components together and offer longevity and sturdiness. This category is dominating the market as a result of the expanding connections between nations and regions. Additionally, it is utilized to waterproof infrastructure, including roads. They shield both residential and non-residential structures from bad weather and prevent accidents from arising. The expansion of this sector is being aided by the expanding building industry in various geographic areas.
According to official statistics, the yearly mileage of four, six, and eight-lane (NHs) have climbed by more than 300 percent over the previous seven years, from just 1,289 km in 2015–16 to 3,963 km in 2021–22. This is expected to rise further since the ministries responsible for roads and road development are now concentrating more on building expressways and economic corridors. The data on lane-wise highway construction reveals that, while the building and expansion of NHs to four lanes has been consistent since 2017–18, the building of six and eight lanes has increased dramatically over the last two years. While only 616 km of NH sections were built as six- and eight-lane roads in 2019–20, and in 2021–22, this yearly growth reached 1,165 km.
Throughout the anticipated period, development in the recreation segment is anticipated. This segment's expansion is being supported by rapid population increase. Bitumen is in great demand for use in residential and non-residential constructions as a result of urbanization and population growth. For example, according to the latest residential construction statistics for February 2022 released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the number of privately owned housing starts in February reached 1,769,000, an increase of 6.8 percent over the revised January estimate of 1,657,000. This was 22.3 percent more than the home starts pace of 1,447,000 in February 2021. February saw 1,215,000 single-family dwelling starts, 5.7 percent more than the revised January total of 1,054,000. For structures with five units or more, the rate in February was 501,000
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The largest share in the global asphalt market was held by the Asia Pacific due to growing construction sector. The increased demand from emerging markets like South Korea, China, and India is responsible for this expansion. Due to the region's growing urbanization and population, China is also the main customer. Regional market expansion is anticipated to be aided by significant infrastructure expansion, construction sector innovation, industry consolidations, and economic growth in the area. The building sector is preparing for slower economic development due to a rise in the coronavirus in the Asia Pacific region. For example, the Indian government set out Rs. 60,241 crores (US$ 8.28 billion) for road construction and Rs. 57,350 crores (US$ 7.88 billion) for national highways in the Union Budget 2021. By March 2022, the government intends to have 8,500 kilometers of road built. Furthermore, by March 2022, 11,000 km more of the National Highway routes will be finished. The Ministry of Road Transport and Highways would receive an investment of Rs. 118,101 crores (US$ 16.20 billion), according to the government. Additionally, the government received a project under the Bharatmala Pariyojana costing Rs. 5.35 lakh crore (US$ 73.37 billion), which included building more than 13,000 km of roads for Rs. 3.3 lakh crore (US$ 45.26 billion).
The global asphalt market in North America is anticipated to expand during the forecast period as a result of the region's expanding use of residential structures for recreational purposes and the expanding trend of maintaining roads and highways. Strong economic expansion, rising building activity, supportive governmental policies, and increased consumer demand will all significantly increase supply. For example, the most recent estimates reveal that rules imposed by all levels of government account for 23.8 percent of the ultimate cost of a brand-new single-family house constructed for sale. In contrast to earlier research, surveying developers and builders separately resulted in a slightly different breakdown of the cost of regulation, with 10.5 percent of the final home price attributable to regulation during the development of the lot and the remaining 13.3 percent attributable to regulation during the construction of the single-family structure. The 23.8 percent prediction for 2021 is a modest decrease from the 24.3 percent seen in a prior research.
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The global asphalt market is relatively fragmented, with a high level of competition. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions.
Top Players in the Global Asphalt Market
Asphalt Market Recent Developments
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According to our global asphalt market analysis, in terms of product type, the pavement material segment held the largest share in the global asphalt market due to its rapid expansion in the construction sector, driven by the increasing need for safer roads to reduce accident rates. By application, the highway segment held the largest share in the global asphalt market which was supported by rapid urbanization and a rising population. For roads and highways, the chemical is utilized as a binding agent to bond the components together and offer longevity and sturdiness. And by region, the Asia Pacific region held the largest share in the market due to the increased demand from emerging markets like South Korea, China, and India is responsible for this expansion. Due to the region's growing urbanization and population, China is also the main customer.
|Market size value in 2021||USD 3.8 billion|
|Market size value in 2030||USD 5.67 billion|
|Forecast Unit (Value)||USD Billion|
|Regions covered||North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)|
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For the Global Asphalt Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
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